Operating Lease Right-of-Use Assets and Lease Obligations

12 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Operating Lease Right-Of-Use Assets and Lease Obligations

11. OPERATING LEASE RIGHT-OF-USE ASSETS AND LEASE OBLIGATIONS

The Company has one operating lease primarily for office and administration.

The Company adopted ASC 842 – Leases using the modified retrospective cumulative catch-up approach beginning on April 1, 2019. Under this approach, the Company did not restate its comparative amounts and recognized a right-of-use asset equal to the present value of the future lease payments. The Company elected to apply the practical expedient to only transition contracts which were previously identified as leases and elected to not recognize right-of-use assets and lease obligations for leases of low value assets.

When measuring the lease obligations, the Company discounted lease payments using its incremental borrowing rate at April 1, 2019. The weighted-average-rate applied is 10%.

	$
Operating lease right-of-use asset - initial recognition		413,236
Amortization for the year		(148,764	)
Balance at March 31, 2020		264,472
Operating lease obligation - initial recognition		413,236
Repayment and interest accretion		(143,151	)
Balance at March 31, 2020		270,085
Current portion of operating lease obligation		213,030
Noncurrent portion of operating lease obligation		57,055

The operating lease expense was $173,175 for the year ended March 31, 2020 and included in the General and administrative expenses.

The following table represents the contractual undiscounted cash flows for lease obligations as at March 31, 2020.

	$
Less than one year		228,443
Beyond one year		57,530
Total undiscounted lease obligations		285,973